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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / SEPTEMBER 1, 2003; VOL. 2 NO. 35

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Systems/Enterprise:

CA'S KUMAR SEES UTILITY COMPUTING AS KEY TO BIZ SUCCESS

Computer Associates International Inc (CA) Chairman and CEO Sanjay Kumar told shareholders at its 2003 Annual Meeting that while customers continue to be conservative in their technology spending, they will make purchases if they see a concrete return on investment.

"Customers don't want point solutions from a variety of vendors," Kumar said. "They want a suite of products that are fully integrated and easily upgraded. They are looking for innovative solutions that span platforms and operating systems and make complex tasks simpler. Simply put, our customers are demanding solutions of greater scope and versatility."

The CA chairman said the fundamental shift in the enterprise software business driven by on-demand computing plays into CA's strength as a management software provider.

"On-demand computing is a vision of a future in which businesses access computing capability in the same way they access a utility," Kumar said. "This approach addresses three customer concerns -- responsiveness, efficiency and cost. We believe the key to on-demand computing is management software -- software that allows customers to better manage and integrate their resources. As the market evolves, we plan to further apply our core enterprise, security and storage management strengths to pursue the next phase of on-demand computing."

Kumar also maintained that CA's business model -- which gives both CA and customers more flexibility in establishing contract terms and conditions -- clearly puts customers at the center of all the company does. He stressed that it is a competitive advantage for CA. "IT providers need to recognize that the future of this business lies in serving customers, in building partnerships and in adding value beyond the software," he said.

In terming fiscal year 2004 a "very exciting year for CA and one of great opportunity," Kumar said CA will focus its energies and resources on providing superb service to customers and on building value for shareholders.

"2004 is sure to offer us many challenges and opportunities," Kumar said. "We'll succeed by continuing to follow a simple formula: Offer the software industry's most comprehensive and innovative enterprise management solutions; leverage a business model that makes it easer for customers to license, install and run our software; and, foster a culture that puts customers at the center of everything we do."

Kumar reaffirmed CA's commitment to being the industry's "gold standard" in corporate governance. Over the past year, CA has adopted new policies and strengthened the composition of the Board of Directors to achieve that goal. The policies are designed to ensure the strongest possible board oversight and the tightest alignment with shareholder interests.

"For an IT company to succeed in the 21st century, customer focus is essential, and so is good corporate governance," Kumar said. "After the economic turmoil of the past several years, customers and investors want to know that the companies with whom they are dealing adhere to the highest standards of conduct. Restoring confidence in American business is a top priority of every responsible business leader."

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